FOX Journalist Raises Question: Will Ripple CEO Personally Shoulder SEC Fines? Garlinghouse Responds

While the crypto community seems to be basking in the euphoria of Judge Torres’ summary ruling, an aspect of the final judgment remains controversial, grabbing the attention of crypto enthusiasts and journalists.

The Contentious Aspect of Judge Torres’s Summary Judgment?

It’s no longer news that Ripple’s XRP programmatic sales, which occur at the beginning of every month, are according to the ruling, not investment contracts. But Ripple’s past direct sales of XRP to institutional investors totaling $729 million are classified as securities. This is the only aspect left to be settled between the two parties.

Read Also: Ripple Unlocks 1 Billion XRP from Escrow in Routine Procedure As XRP Price Remains Stable

With the above ruling in mind, crypto investors think that Ripple could forfeit $729 million in the form of a fine to the U.S. SEC. Intriguingly, this aspect also grabbed the attention of the renowned Fox Business journalist Charles Gasparino.

Gasparino weighed into the controversial topic via a tweet where he probed if Ripple CEO, Brad Garlinghouse, could shoulder the penalty responsibility. He also asked if Ripple is financially buoyant enough to offset the fine.

Brad Garlinghouse Reacts

In response to Gasoarino’s tweet, Garlinghouse claimed that the court and not the SEC would be the one to decide the issue of the potential penalties raised in the final verdict.

Garlinghouse noted that the SEC had already lost every vital aspect of the lawsuit, and its attempt to misconstrue Judge Torres’s ruling as a split victory seems quite pathetic.

Read Also: Ripple CEO Explores Potential of Blockchains Like XRP Ledger in Revolutionizing Real Estate

“You very well know this case was never about fines or penalties; it was about establishing the non-security status of XRP. We won. They lost,” the Ripple CEO stressed.

Meanwhile, in a different finding, Paul Grewal, the chief legal officer at Coinbase, seems to corroborate Brad’s claims; he tweeted, “Don’t be misled that Judge Torres ruled that sometimes XRP is a security and sometimes it isn’t. That’s exactly the opposite of what she ruled:  XRP itself is NEVER security. “ Page 15:  “XRP, as a digital token, is not in and of itself a ‘contract, transaction[,] or scheme’ that embodies the Howey requirements of an investment contract.”

The SEC Seems Satisfied With The Court’s Final Ruling

Per a statement sent to Fox Business, the SEC noted that it is glad the court did not fully acquit XRP of all charges, especially the court ruling which implicated Ripple for violating federal securities law in certain circumstances through its sales of XRP.

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